Financial Crime World

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Beneficial Ownership Registry for Anguilla

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Introduction

The establishment of a beneficial ownership registry in Anguilla is crucial for ensuring transparency and accountability in financial transactions. This article outlines the steps required to establish such a registry, including identifying information on beneficial owners, access to the register, and costs associated with establishing the registry.

Establishing the Registry

Steps for the Anguilla Financial Services Commission

To ensure that adequate, accurate, and current information on beneficial ownership is available in Anguilla, the following steps should be taken by the Anguilla Financial Services Commission:

  • Establish a central register of beneficial owners
  • Develop clear guidelines and regulations for maintaining and updating the register
  • Provide training to Company Service Providers (CSPs) and other relevant entities on the requirements for disclosing beneficial ownership information
  • Conduct regular audits and monitoring to ensure compliance with the regulations

Extending the Commercial Registry

Yes, Anguilla should seek to extend its Commercial Registry to include beneficial ownership information. This would provide a centralized database that is easily accessible by regulatory authorities and law enforcement agencies.

Reasons for extending the registry:

  • To enhance transparency and accountability in financial transactions
  • To prevent money laundering and other illicit activities
  • To facilitate international cooperation on combating financial crimes

Access to the Register

The register should be made available to the following entities:

  • Regulated entities such as banks and other financial institutions
  • Law enforcement agencies (both domestic and foreign)
  • Competent tax authorities (domestic and foreign)

However, access to the register for certain individuals or organizations may need to be restricted due to confidentiality concerns.

Identifying Information on Beneficial Owners

The following identifying information should be held in the register:

  • Name
  • Address
  • Date of birth
  • Nationality
  • Passport number (if applicable)
  • Other relevant identification details

However, not all of this information may need to be made public.

Responsibility for Providing Information

The company and the beneficial owner(s) should be responsible for providing accurate and up-to-date information on beneficial ownership. The Company Service Provider (CSP) may also have a role in verifying the accuracy of the information provided by the company.

Costs Associated with Establishing the Registry

The costs associated with establishing the registry are likely to fall both on the Government and the private sector. The exact costs will depend on various factors, including the scope of the project, the number of companies involved, and the level of technology required.

However, a rough estimate of the costs could be:

  • Government: $500,000 - $1 million (for infrastructure development, staffing, and training)
  • Private sector: $100,000 - $200,000 (for CSPs to update their systems and provide training)

Security Risks

There are potential security risks associated with establishing a central registry administered by the Government or a statutory body. These risks include:

  • Unauthorized access to sensitive information
  • Data breaches
  • Insider threats

To mitigate these risks, measures such as encryption, firewalls, and secure authentication procedures should be implemented.

FATF Definition of Beneficial Ownership

The Financial Action Task Force (FATF) defines beneficial ownership as the individual(s) who ultimately owns or controls a company, either directly or indirectly. This includes individuals who own more than 25% of the shares in a company, or those who have equivalent control over the company.

All types of companies and legal entities should be in scope of the registry, including:

  • Limited liability companies
  • Private limited companies
  • Public limited companies
  • Trusts

However, certain exemptions may need to be granted for small businesses or organizations that do not pose a high risk.

Exemptions from the Registry

Exemptions from the registry should be granted in specific circumstances, such as:

  • Small businesses with less than $100,000 annual turnover
  • Charitable organizations
  • Other non-profit entities

However, these exemptions should be subject to regular review and monitoring to ensure that they do not compromise the effectiveness of the registry.

Global Application

Anguilla’s central register should adhere to an internationally accepted standard, such as the FATF Recommendations on Beneficial Ownership.

Conclusion

Establishing a central registry of beneficial owners in Anguilla would require careful planning, coordination, and implementation. It is essential to strike a balance between transparency and accountability, while maintaining confidentiality and protecting sensitive information.